INTB 3354 CH 14

marketing mix
set of strategy decisions made in the areas of product, promotion, price, and distribution in order to satisfy the needs and desires of customers in a target market.
true
T/F: top management would prefer to standardize the marketing mix globally; that is the strategic decision makers would prefer to use the same marketing mix in all of the firm’s markets because standardization can produce significant cost savings.
true
T/F: the product is the central part of the marketing mix.
total product
what the customer buys, including the physical product, brand name, accessories, after sales service, warranty, instructions for use, company image, and package.
industrial products
insensitive to the foreign environment/foreign forces. no product change. can be sold unchanged worldwide
basic consumer products
in the middle of the continuum of sensitivity to the foreign environment. can be sold unchanged to certain segments that have similar characteristics across countries. some product change needed
high style and faddish consumer products
highly sensitive to the foreign environment. generally require greater modification to meet local market requirements than do industrial products. limited product change, sensitive to foreign forces
services
like the marketing of industrial products, is generally less complex globally than is the marketing of consumer products. however, laws and customs sometimes do mandate providers alter their ___________. insensitive to foreign forces, limited change
sociocultural forces, legal forces, economic forces, physical forces.
Foreign environmental forces: (4)
promotion
any form of communication between a firm and its publics
same product same message, same product different message, product adaption-same message, product adaptation-message adaptation, different product-same message, different product for the same use different message.
promotional strategies: (6)
(1) marketing the same product everywhere, (2) adapting the physical product for foreign markets, (3) designing a different physical product with the same, adapted, or different messages.
9 distinct promotion strategies are possible, by combining the 3 alternatives of: (3)
same product-same message
limited market variation. when marketers find that target markets vary little with respect to product use and consumer attitudes, they can offer the same product and use the same promotional appeals in all markets.
same product-different message
product satisfies different needs. the same product may satisfy a different need or be used differently elsewhere. this means the product may be left unchanged but a different message is required.
product adaptation-same message
modify product but not its function. in cases where the product serves the same function but must be adapted to different conditions, the same message is employed with a changed product
product adaptation-message adaptation
modify product and its function. in some cases both the product and the promotional message must be modified for foreign markets.
different product-same message
distinct product with same function. in some markets the potential customers cant afford the product as manufactured for developed markets. to overcome this obstacle companies frequently produce a very distinct product for these markets. the promotional message however can be very similar to what is used in the developed markets if the product performs the same functions.
different product for the same use-different message
distinct product and different needs. frequently the different product requires a different message as well.
advertising, personal selling, sales promotion, public relations, publicity
tools for communicating the promotional mix: (5)
advertising
paid, nonpersonal presentation of ideas, goods, or services by an identified sponsor.
internet advertising
the internet offers several attractive elements as a promotional medium
type of product advertising
buyers of industrial goods and luxury consumer goods usually act on same motives the world over. standardization works well for capital goods.
foreign environmental forces advertising
basic cultural decision is whether to position product as local or foreign
globalization versus localization advertising
look for similarities across countries in order to capitalize on them by providing promotional themes with worldwide appeal. another view believes it is preferable to develop separate appeals to take advantage of differences among customers in different cultures and countries.
programmed management approach (advertising)
middle ground advertising strategy between globally standardized and entirely local programs. this approach gives the home office a chance to standardize those parts of the campaign that may be standardized but still permits flexibility in responding to different market conditions.
personal selling and the internet advertising
the internet will not eliminate the need for personal selling. personal selling depends on trust. the internet makes communication easier, but trust building harder.
international standardization advertising
sales force organization, sales presentations, and training methods similiar to those in home country. B2B firms lend themselves better to standardization when dealing with channel members.
sales promotion
any of various selling aids, including displays, premiums, contests, and gifts
public relations
various methods of communicating with the firm’s publics to secure a favorable impression.
pricing strategies
views of the price-quality relationship varies between countries. price is a controllable variable
foreign national pricing (domestic pricing in another country) and international pricing (for exports)
pricing for overseas markets is more complex because managements must be concerned with 2 kinds of pricing:
foreign national pricing
local pricing in another country. based on government price controls, cost differentials of different markets, diverse competition, and product in different stage of product life cycle
international pricing
setting prices of goods for export for both unrelated and related firms.
transfer price
intracorporate price, or the price of a good or service sold by one affiliate to another, the home office to an affiliate, or vice versa.
true
T/F: The basic functions of domestic and international marketing are the same.
true
T/F: Consumer products require greater adaptation for international sales than industrial products.
same product-different message
When a product is sold for a particular purpose in one country but is used differently elsewhere, the strategy that should be followed is _____.
same product-same message
product adaptation-same message
same product-different message
different product for the same use-different message
false
T/F: Public relations includes activities such as the preparation of point-of-purchase displays, contests, premiums, trade show exhibits, money-off offers, and coupons.
total product
The _____ is a summation of the physical product, brand name, accessories, after-sales service, warranty, instructions for use, company image, and package.
direct product
dot product
marginal product
total product
programmed management
The _____ approach is a middle-ground advertising strategy in which the home office and the foreign subsidiaries agree on marketing objectives, after which each subsidiary puts together a tentative advertising campaign.
programmed management
management contract
international standardization
foreign national pricing
marketing mix
_____ is a set of strategy decisions made in the areas of product, promotion, pricing, and distribution in order to satisfy the needs and desires of customers.
Contract management
Market segmentation
The marketing mix
Programmed management
true
T/F: International pricing involves the setting of prices for goods produced in one country and sold in another.